Business Moves

Allied World, Darwin Professional

Bermuda-based Allied World Assurance Co., Ltd. has agreed to acquire Connecticut-based Darwin Professional Underwriters, Inc.

Darwin offers specialty and primary professional lines coverages, which include health care professional liability and niche errors and omissions. Darwin also has a business and technology model to underwrite small professional liability business, which is expected to complement Allied World’s large account, specialty insurance and reinsurance strategy.

Scott Carmilani, president and chief executive officer of Allied World, said the acquistion will “accelerate Allied World’s expansion of its U.S. specialty insurance operations.” He said the deal will more than double Allied World’s presence in the U.S., particularly within the U.S. health care market.

Darwin’s President and Chief Executive Officer Stephen J. Sills said he thinks Darwin will be further expanded as part of a larger global organization.

Jack Sennott, Darwin’s chief financial officer, will become the chief operating officer of Darwin upon the closing of the transaction.

Under the terms of the agreement, security holders of Darwin will receive about $550 million in cash, or $32.00 per share, in exchange for 100 percent of their interests in Darwin.

The the transaction is subject to obtaining various regulatory approvals and the approval of Darwin’s shareholders.

A subsidiary of Alleghany Corp. has agreed to vote 40 percent of the outstanding Darwin shares in favor of the transaction. The transaction is expected to be completed during the fourth quarter of 2008.

Darwin member companies include Darwin Professional Underwriters, Inc., Darwin National Assurance Co. and Darwin Select Insurance Co.

Allied World Assurance is a global provider of insurance and reinsurance solutions, with offices in Bermuda, the U.S. and Europe.

Crump, Five Star Specialty Programs

BISYS Specialty Programs, a division of BISYS Commercial Insurance Services, has changed its name to Five Star Specialty Programs, a division of Crump Insurance Services, Inc.

The change is part of the consolidation of its operations with Crump Insurance Services, announced last August. Crump Insurance Services is part of Crump Group, a national insurance wholesaler.

David Tooley, president of Five Star Specialty Programs, said the firm is well known for specializing in transportation, workers’ compensation and professional liability business and is now looking to expand.

The Five Star comes from the original name of its professional liability programs, Five Star Managers. The re-branding campaign includes a new website, www.5StarSP.com.

Crump Insurance Services, Inc. is made up of legacy Crump wholesale brokerage locations across the U.S. and in Bermuda, and the former BISYS Commercial Insurance Services operations including Tri-City Brokerage and 5Star Specialty Programs.

Everest

Everest Indemnity Insurance Co., a U.S. insurance subsidiary of Everest Re Group, Ltd., said it will now offer its environmental insurance products directly to the wholesale and retail markets. Formerly these products were only available through an exclusive arrangement with a managing general agent.

This product line provides pollution liability coverage for contractors, professional environmental consultants, environmental contractors, motor vehicle, waste facilities and site specific pollution.

Everest offers these products in all 50 states, including the District of Columbia.

According to the company, the MGA Everest used was recently bought out by another insurer and the exclusive was then cancelled.

TAPCO

TAPCO Underwriters, Inc., a Burlington, North Carolina-based excess and surplus lines managing general agency, is now offering its products and proprietary quoting and binding process to retail agents in Delaware and New Jersey. The move follows its expansion into California and Texas in 2007. The company began in 1983 with just three people but has since grown to five offices employing 180 people, servicing 8,000 agencies and writing in 12 states.

Palm Beach, SUNZ

Palm Beach Capital of West Palm Beach, Florida, acquired SUNZ Group LLC, a workers’ compensation provider. SUNZ, based in St. Petersburg, Florida and founded in 2005, provides workers’ compensation primarily for professional employer organizations and staffing companies. The parties did not disclose the terms of the transaction.

Pinnacle, Beach & Gentry

Pinnacle Financial Partners Inc. has acquired Murfreesboro, Tenn.-based Beach & Gentry Insurance LLC. Terms were not disclosed.

The company said that Beach & Gentry will merge with Miller & Loughry Insurance & Services Inc., a wholly-owned subsidiary of Pinnacle Financial Partners, also located in Murfreesboro, immediately.

The combined company will take the name Miller Loughry Beach and will consolidate offices at 214 W. College Street in Murfreesboro.

Ken Halliburton will be managing principal of Miller Loughry Beach. Beach & Gentry Principal Clay Beach and Eddie Miller of Miller & Loughry will have leadership roles. All insurance advisors will remain with the combined company. Advisors include Mike Gentry, Jeff Adrian, Hank Coppedge, Gary Garner and Chase Sinquefield from Beach & Gentry; and Rusty Dallas, Bobby Mason, Susan McIndoo, Tim Morrell and Karl Welch from Miller & Loughry.

Beach & Gentry, founded in 1972, has 18 associates and 4,000 clients. Miller & Loughry, the oldest independent insurance agency in Murfreesboro, was founded in 1949 and has 22 associates and 6,300 clients.

Topics USA